Question

Find the sum of money that amounts to $Rs11200$ in $3$ years at the interest rate $4\%$ per annum.

Answer 1

We know,

$A=\frac{PTR}{100}$

Where:

$A=$ the future value of the investment/loan, including interest

$P=$ the principal investment amount (the initial deposit or loan amount)

$r=$ the annual interest rate

$t=$ the time the money is invested or borrowed

$11200=\frac{P\times 3\times 4}{100}$

$\therefore P=\frac{11200\times 100}{3\times 4}=93,333.3$